Thursday 21 November 2019

US investment fund LoneStar on verge of taking over the Jurys Inn hotel chain in €930m deal

Jurys Inn Hotel in Limerick
Jurys Inn Hotel in Limerick

Peter Flanagan, Commercial Property Editor

US investment fund LoneStar is on the verge of taking over the Jurys Inn hotel chain in a deal worth £700m (€930m).

The firm is understood to be in talks to take over the business, which includes 31 hotels in Ireland, the UK and Czech Republic.

Under the terms of the deal, LoneStar will take over the Jurys Inn assets outright, as well as the remaining loans held against the business.

While an agreement is yet to be formally concluded, LoneStar are considered strong favourites to take over the chain, which had been slated to be put on the block later this year.

In April 2013, Jurys Inn secured about €140m in new investment from a syndicate made up of Oman Investment Fund, the US investment funds Mount Kellett Capital Management and Avestus Capital Partners, as well as Ulster Bank and Westmont Hospitality Group, one of North America's largest privately owned specialist hotel investors. That deal combined with a debt write off of about €330m dramatically improved the outlook of the business, which had been saddled with enormous liabilities.

Businessman Derek Quinlan's private equity firm bought the company from the Doyle family with loans of more than £600m in 2007.

However, after the bust took hold, Royal Bank of Scotland took over the business. Lenders AIB, IBRC and Ulster Bank agreed to a debt write-off of £280m (€328m) of debt for Jurys Inn as part of the 2013 deal.

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